As an entrepreneur you will have to ensure that all kilometers traveled are recorded for private use by yourself and your employees. This is also called trip registration, kilometer registration or trip administration. Read on to avoid getting unnecessary fines because you have often driven the company car.
What is trip registration exactly?
With travel registration you keep as an entrepreneur for the tax authorities how many kilometers you have driven for private use with a company car. This may not be more than five hundred kilometers per year, otherwise you will have to deal with an expensive addition. You must also report this to the tax authorities before you have exceeded this limit. You must also keep the data for seven years.
What if the trip registration is not correct?
Violation of the duty to report may result in a fine for both the employee and the employer, based on the amount of tax that the Treasury has lost. This is linked to a maximum (in 2015) of 6,140 dollors. In addition, payroll tax or the national insurance contributions and income-related healthcare insurance contribution may have to be paid retrospectively. It is therefore important that you keep track of the private kilometers. You must be able to justify every trip you have made.
When and why do you have to keep a trip registration?
As soon as you drive private kilometers, you keep track of your journeys. You do this for both the tax authorities and your employer to show that you have not driven more than five hundred private kilometers to avoid fines. You therefore make a mandatory distinction between private and business kilometers. For this reason there is time registration software with rides registration.
What do you mention in the trip registration?
In order to make the trip administration complete, you have to register the kilometers of each private ride. But what do you have to mention in the trip registration? These are the requirements of the tax authorities:
- The car brand
- The car type
- The license plate
- The period in which you have the car at your disposal
- The ride data
Which points do you state per ride?
The journey data must again contain the following points from the tax authorities:
- The user
- The date
- The ride number
- Whether the ride is a private ride or a business trip
- The start and end position of the odometer
- The departure and arrival address
- The route (when it is not a usual route)
How can I most easily keep track of my trip registration?
Keeping track of the rides seems like a lot of work. Whether that is the case depends on each situation. For some entrepreneurs, keeping track of the journeys in an Excel file. But keeping track of this is going to take a lot of time. If you want to save time on keeping track of your journey administration, there are several possibilities.
Do I keep track of my mileage?
There are different ways to keep track of your mileage. You can do this manually with an Excel file, but many entrepreneurs find this time-consuming and tedious work. The jj keller e logs has been designed for this purpose, which is an excellent tool for the trip registration. This is an automated system that keeps track of the kilometers via GPS, so you no longer have to keep track of it yourself.
A solution for this is the elogs by jj keller reviewed. For a small amount, you use software that links the elog registration with the time registration software. This registration can often be arranged via a mobile app. So you can easily enter the driven mileage on your phone and you have all the mileage and hours in an accurately kept overview. This software makes it easier, faster and reduces the chance of errors.
Do I have enough rides registration software?
This software package brings a lot of benefits. But make sure you do not make estimates, but come up with precise numbers. Do not forget the private kilometers and do not confuse private and business. Think carefully when you lend your company car.
So make sure that the registration of your driven mileage for private use in the company car is accurately recorded. It is not the most fun work, but with this software, it’s all a lot easier and faster. This will prevent the tax authorities from surprising you with unnecessary fines.